A recent study on personal checking accounts shows that while the range of services offered by Swiss banks is similar, the costs vary greatly. Some providers attract customers with “free accounts,” while others charge hundreds of francs.

Personal accounts are part of everyday life: salaries and pensions are deposited into personal accounts. It is also possible to pay bills through a personal account. Consumers use the debit card linked to their personal account to pay for purchases and withdraw cash at ATMs. The online comparison service moneyland.ch therefore analyzed Swiss personal accounts, including payment transactions and debit cards, as part of a study. In total, moneyland.ch examined 34 different Swiss banks, taking into account both well-known, nationally active institutions and smartphone banks as well as regional providers. The study shows how personal accounts differ and what costs are incurred.

How do Swiss personal accounts differ?

All personal accounts offer the ability to receive transfers, pay bills, and use a debit card for payments and cash withdrawals. Only a very small number of providers do not offer eBill or their own Twint app.

Depending on personal needs, other aspects may be relevant. For example, e-banking and apps work differently at each bank. Expectations regarding customer service, as well as the locations of branches and ATMs of the primary bank, also vary. These individual aspects are not taken into account in the study.

Instant Payment Currently Available at Only a Few Swiss Banks

The exception is Instant Payment: About two-thirds of providers do not offer this service to customers for outgoing transfers. Only eleven of the 34 providers allow money to be transferred to an account at another Swiss bank within seconds. Incoming payments, however, are possible, as most Swiss banks are required to credit such payments immediately. At least Alpian, Neon, and Zak enable fast transfers if the sender and recipient have accounts with the same provider.

How much do Swiss personal accounts cost?

The cost of a personal account also depends on usage. For the study, moneyland.ch created two profiles:

● Cashless: Purchases are consistently paid for with a debit card.

● Cash: Purchases are paid for with cash withdrawn from an ATM.

The same assumptions apply to both profiles: Customers pay their bills via online banking (ten transfers per month), opt out of receiving paper statements by mail, and maintain an average balance of 8,000 francs at their respective bank.

The costs were calculated for both profiles in two scenarios: one for exclusive use in Switzerland and one for combined use in Switzerland and abroad.

This is how much the “card payer” pays for use in Switzerland

For 14 providers, the total cost of the cheapest offer is 0 francs: Bank Avera, Bank WIR, Migros Bank, Swissquote, UBS Key 4, and Valiant, several cantonal banks (Aargauische, Basler, Berner, and Zürcher), as well as the smartphone banks Alpian, Neon, Yuh, and Zak.

The explanation: Some banks now offer what is known as a “free account,” and some of these waive not only the basic account fee but also the basic fee for the debit card. “Until recently, free accounts were available from only a handful of providers. That has since changed: Following the lead of Zürcher Kantonalbank, other banks have followed suit, such as UBS Key 4 and Valiant,” says Ralf Beyeler of moneyland.ch. He continues: “One reason for this push is likely competition from Revolut and other smartphone banks.”

Most banks, however, continue to charge basic fees. Premium customers pay 48 francs a year at Raiffeisen and 60 francs at Postfinance. UBS comes in last at 144 francs.

This is how much the “card user” pays for use in Switzerland and abroad

Taking into account fees for card payments abroad, the total cost of the cheapest offer at eight banks is 0 francs: at Bank WIR, Berner Kantonalbank, Swissquote, and Valiant, as well as the smartphone banks Alpian, Neon, Yuh, and Zak. At other banks, the costs are higher: Zürcher Kantonalbank charges 37.50 francs annually, while Migros Bank charges 52.50 francs. Raiffeisen and Postfinance incur total annual costs of more than 100 francs.

It is striking that only twelve banks waive foreign transaction fees when paying for purchases with a debit card. The remaining banks charge a processing fee, which typically amounts to around 1.50 francs or 1% to 2% of the purchase amount. Ralf Beyeler recommends: “Make sure you use a card that doesn’t charge foreign transaction fees when paying abroad. The card should also offer a good exchange rate.”

For this study, moneyland.ch did not factor in the costs of the exchange rate surcharge due to a lack of available data. Depending on the bank, this can easily amount to 2% or more, as a recently published analysis shows.

Here’s how much the “cash payer” pays for using the card in Switzerland

At Bank Avera, the total cost for the “cash payer” is 0 francs. The second-cheapest option is the smartphone bank Yuh, at 15.20 francs per year. In third place are the Western Swiss regional bank Caisse d’Epargne d’Aubonne and Sparkasse Schwyz, both at 30 francs. “It’s striking that almost all regional banks are in the top half of the table,” says Ralf Beyeler. One reason for this is that while most regional banks charge an annual fee for an account or card, they don’t charge for each individual cash withdrawal separately.

The major banks are more expensive: UBS Key 4 charges 36 francs annually, Valiant 48 francs, and Raiffeisen 84 francs. Postfinance comes in at 120 francs. UBS also ranks last in this category at 180 francs. The calculations assume 60 cash withdrawals per year, half of which—where possible—are made at the customer’s own bank’s ATMs.

This is how much the “cash user” pays for usage in Switzerland and abroad

Taking into account the fees for twelve cash withdrawals at foreign ATMs, Valiant is the most affordable with total annual costs of 48 francs. Bank Avera follows in second place at 60 francs, and Yuh at 74 francs. UBS Key 4 charges 96 francs. Migros Bank, Postfinance, and Zürcher Kantonalbank each incur total costs of 120 francs. UBS brings up the rear at 240 francs.

Which cantonal banks are the cheapest?

There is a cantonal bank in 24 of Switzerland’s 26 cantons. The analysis reveals significant differences in total costs between the cantons: The cantonal banks in Basel-Stadt, Zurich, Aargau, and Bern are the cheapest. In all four calculations, the banks from the cantons of Basel-Landschaft and Geneva bring up the rear.

Depending on the calculation, the difference between the cheapest and the most expensive cantonal bank ranges from 100 to 135.50 francs.

Methodology

For this study, the online comparison service moneyland.ch considered only personal accounts—including payment transactions and debit cards—from Swiss banks. Other banking products such as savings accounts, retirement accounts, and credit cards are not included in the study.